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Employee and Labor Management Relations PDF
Employee and Labor Management Relations PDF
RELATIONS
BY:
EMILY A. SUMALINOG
MPA Student
Note:
Before we proceed the discussion lets defined first what is Labor Relations, employee and
employer.
Labor Relations – is the relationship between management and
labor, especially with respect to the maintenance of
agreements, collective bargaining, etc.
Employer – is a person or institution that hires employees or
workers. Employers offer wages or a salary to the
workers in exchange for the worker’s work or labor.
Employee – is an individual who was hired by an employer to
do a specific job.
Note: Workers have the right to join a union. Having support from the union to ensure fairness
and respect in the workplace is one of the key reasons workers organize.
The union may negotiate with a single employer or may negotiate with a group of businesses,
depending on the country, to reach an industry wide agreement.
COLLECTIVE BARGAINING TO HR
Labour relations is closely tied to HR planning since the labour
contract generally stipulates policies and procedures related to
promotions, transfers, job security, and lay-offs;
The are of HR where the knowledge of collective bargaining is
probably most critical in compensation and benefits, since
almost all aspects of wages and benefits are subjects to
negotiation.
Note: this means the HR is the one who supervise labor relations
support staff and serve as the management representative in labor
negotiation, bargaining, or interpretive meetings.
THE LABOR CONTRACT
Prepare
Discuss
Propose
Bargain
Settlement
The collective bargaining process comprises of five core steps::
Prepare: This phase involves composition of a negotiation team. The negotiation team should
consist of representatives of both the parties with adequate knowledge and skills for
negotiation. In this phase both the employer's representatives and the union examine their own
situation in order to develop the issues that they believe will be most important. The first thing
to be done is to determine whether there is actually any reason to negotiate at all. A correct
understanding of the main issues to be covered and intimate knowledge of operations, working
conditions, production norms and other relevant conditions is required.
Discuss: Here, the parties decide the ground rules that will guide the negotiations. A process
well begun is half done and this is no less true in case of collective bargaining. An environment
of mutual trust and understanding is also created so that the collective bargaining agreement
would be reached.
Propose: This phase involves the initial opening statements and the possible options that exist
to resolve them. In a word, this phase could be described as 'brainstorming'. The exchange of
messages takes place and opinion of both the parties is sought.
Bargain: negotiations are easy if a problem solving attitude is adopted. This stage comprises
the time when 'what ifs' and 'supposals' are set forth and the drafting of agreements take place
Settlement: Once the parties are through with the bargaining process, a consensual agreement
is reached upon wherein both the parties agree to a common decision regarding the problem or
the issue. This stage is described as consisting of effective joint implementation of the
agreement through shared visions, strategic planning and negotiated change.
FUNCTIONS
1. Collective bargaining as a process of social change
2. Collective bargaining as a peace treaty
3. Collective bargaining as an industrial jurisprudence
Note:
bargaining enhances the status of the working class in the society. Wage earners
have enhanced their social and economic position in relation to other groups.
Employers have also retained high power and dignity through collective bargaining.
Collective bargaining serves as a peace treat between the employers and
employees, however the settlement between the two parties is a compromise.
Collective bargaining creates a system of “Industrial Jurisprudence” It is a method of
introducing civil rights into industry. It establishes rules which define and restrict the
traditional authority exercised by employers over their employees placing part of the
authority under joint control of union and management.
PUBLIC SECTOR LABOR MANAGEMENT
COUNCIL OF THE
CIVIL SERVICE COMMISSION
WHAT IS PSLMC?
Public Sector Labor Management Council (PSLMC) is
mandated to promulgate necessary rules and regulations
to govern the exercise of the right to self-organization of
government employees. It is composed of the heads of
the Civil Service Commission, Department of labor and
Employment, Department of finance and Department of
Justice and the DBM with elected worker’s
representatives sitting as observers.
Note:
This means PSLMC is to ensure the fundamental rights of workers in the public, and also to promote
public sector unionism leading to better, more democratic and accountable public services. The PSLMC
was constituted under EO No. 180 on June 1, 1987 It was mandated to implement and administer the
provisions and to promulgate the necessary rules and regulations to implement it.
EMPLOYEE UNION REPRESENTATIVES
Note:
In today's economy, where businesses must compete globally and governments are expected
to do more with less, the most important business relationship that exists is the relationship
between the employer and the employee. The labor-management relationship impacts directly
on profitability, productivity, job security, and quality of life.
WHY IS THERE A NEED FOR LABOR AND
MANAGEMENT TO COOPERATE?
Note: Primary, because labor and management are social partners
sharing a common interest in the success and growth of the
enterprise and the economy Specifically,
• to promote workers' participation in decision-making
processes
• to create a labor relations climate conducive to productivity
improvement
• to improve the quality of working life
• to achieve and sustain economic growth
WHAT ARE THE MECHANISMS TO PROMOTE
LABOR - MANAGEMENT COOPERATION?
1) Direct participation mechanisms through small group activities like quality control circles
or productivity improvement circles
2) Indirect participation mechanisms through joint consultative bodies like labor-
management councils or committees
3) Combination of direct and indirect participation mechanisms like joint bodies and small
group activities
• personnel policies
• production plans
• business expansion programs
• productivity improvement programs
• productivity gain-sharing programs
• job security
• improvement of quality of worklife
• occupational health and safety programs
• introduction of new technology and machinery
• retrenchment programs
• business mergers or closure
• workers' welfare and livelihood programs
• sports, recreation and social activities
WHAT BENEFITS CAN WORKERS DERIVE FROM LABOR-
MANAGEMENT COOPERATION PROGRAMS?
• Opportunity to participate in policy and decision-making process
• A channel of communication to top management
• Means to make inputs in solving operational problems and management
plans affecting workers in the workplace
• Avenues for employees to air complaints that cannot be appropriately
addressed in the grievance procedure
• Opportunity to demonstrate that the union is a responsible organization with
a constructive role to play beyond the traditional contract negotiations and
grievance settlement
• Opportunity for self-improvement and on-the- job leadership training
WHAT BENEFITS CAN MANAGEMENT DERIVE FROM LABOR-
MANAGEMENT COOPERATION PROGRAMS?
• A forum to share information about business conditions, quality problems, product
development and other matters that demonstrate the role of employees in the
success of the enterprise.
• An opportunity for advanced discussions of operational problems and plans,
particularly those affecting employee work schedules, overtime, lay -offs, transfers
etc.
• A means to relate with the union without being bogged down in labor relations
issues.
• Opportunity to demonstrate responsiveness to constructive suggestions and valid
complaints of employees in improving the workplace.
• Means to tap the large reservoir of know-how and creativeness of employees.
• A channel of communication with employees.
• Enhancement of human factor in organizational effectiveness.
STEPS IN THE FORMULATION OF LABOR-
MANAGEMENT COOPERATION PROGRAMS
1) Orientation on labor-management cooperation
2) Recognition of common objectives and problems and the need to cooperate
and agree on mutually acceptable solution
3) Determination of appropriate organizational structure
4) Adoption of operating guidelines to govern the cooperation program
5) Setting-up of the operating structure
6) Training of persons involved in the cooperation program
7) Identification and prioritization of problems
8) Formulation and development of plans and projects
9) Implementation of plans and projects
10) Monitoring and evaluation of projects
GUIDELINES IN SETTING UP APPROPRIATE ORGANIZATIONAL
STRUCTURE
Note: Under R.A. 6715, the operating mechanism f labor-management cooperation program in
organized establishments is called Labor-Management Council. In unorganized
establishment, the mechanism is called Labor-Management Committees.
To ensure the orderly operations of the Council or the Committee, it is desirable that the
parties agree on basic guidelines or principles which may include: